Traders in exchange-traded funds say new settlement rules across European stock exchanges are likely to reduce liquidity and increase costs for investors.
The rules, which were proposed by the European Commission in March this year, aim to reduce systemic risk and increase competition between securities depositaries by moving to a region-wide procedure of settling securities transactions two days after the trade date.
The new Dutch government, formed earlier today, has announced that the Netherlands will support the Financial Transaction Tax (FTT). The move comes after previous Dutch governments had rejected the FTT.
Amundi ETF, the exchange-traded fund platform of the asset management firm jointly owned by Société Générale and Crédit Agricole, has launched a new exchange-traded fund allowing investors to take positions on the Japanese equity market, while hedging their currency exposure from yen into euros. The fund has been listed on NYSE Euronext in Paris.
State Street Global Advisors’ exchange-traded fund arm, SPDR, has launched a new ETF to track the net total return version of the Dow Jones Global Real Estate Securities index.
The ETF will allow investors to access the performance of globally listed stock corporations in the real estate sector. The companies listed in the index have a market cap of at least US$200 million and a proportion of revenues derived from owning and managing real estate of at least 75%.
European ETF provider Lyxor has announced that it has launched two new ETFs based on French and Italian government bonds.
The ETFs are based on indices provided by MTS, a majority-owned subsidiary of the London Stock Exchange, and are called the Lyxor 1-3Y MTS France Government Bond ETF and the Lyxor MTS 1-3Y Italy Government Bond ETF.
Cofunds lists Vanguard funds as UK’s adviser platforms open up to lower-cost index trackers